Stocks Sink as Morgan Misses

Stocks retreated this morning, after Morgan Stanley reported a worse-than-expected $2.29 billion loss. Goldman Sachs posted a similar number yesterday, but whereas its stock rose, Morgan’s dropped more than 5%. The Dow likewise shed 107 points at the open, while the Nasdaq and S&P each dropped 1.3%. Also on the decline were Apple, which was downgraded by an Oppenheimer analyst, and Newell Rubbermaid, down 12% after announcing a round of layoffs.

The losses come in the wake of yesterday’s 359-point Dow surge. “Following interest-rate cuts you always see an initial reaction and then you get back to your senses,” said one analyst. “All the structural indicators, such as the economic cycle and profit outlook, remain negative.” (More stock market stories.)